Government mulls establishment of Distress Fund for industries

The Ministry of Trade and Industry has said government is considering the option of creating a “Distress Fund” to support local industries that are economically viable but operationally weak.

 

The provision of the fund to industries forms part of broader government accelerated programme for Ghana’s industrial transformation agenda that aims at  helping expand capacity of firms to increase production and employ many jobless young graduates.

 

Mr Alan Kwadwo Kyeremateng, the Minister for Trade and Industry, who said this during a panel discussion at the Ghana’s first ever National Policy Summit on Monday, expressed the significant role of the private sector in growing the economy for higher productivity and expanding job opportunities.

 

He said the government was going to come out soon with 10 key stimulus package agenda to back local business growth, boost production and power the economy to improve the living conditions of people.

 

He re-echoed the government’s pledge to put up at least one commercially viable factory in each of the country’s 216 administrative districts and diversify the economy as Ghana had far too long depended on traditional crops like cocoa and gold.

 

Mr Kyeremateng said the government was determined to lay a strong foundation for active private sector participation in driving the government ambitious accelerated programme for industrial transformation. 

 

He noted: “Every sector, whether social or productive is anchored on the success or otherwise of what the Ministry of Finance does; and so if you are going to optimise the benefits from each of these sectors, then the macro environment within which these sectors operate must be sound.”
   

The Sector Minister also announced plans to establish industrial parks in each of the 10 regions and in the economic zones as well as create ‘Ghana industrial subcontract” to link small companies to big ones.

He noted that government would pursue aggressive export expansion for enterprises to take advantage of the new production envisaged.

 

Dr Eric Osei Assibey of the Institute of Economic Affairs said: “The government appears to be on the right track with its polices,” but expressed wonder what was going to happen in the next four or five years.

 

“This is not the first time we have these economic policies, we have seen them go to sleep and not see the light of the day, and they are not backed by political commitment.”

Source: GNA